HF 2433 (LSB 5910HV (2) 87)

HOUSE FILE 2433

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO HF 2216)

A BILL FOR

An Act relating to county financing of certain public building projects.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 331.441, subsection 2, paragraph b, subparagraph (5), unnumbered paragraph 1, Code 2018, is amended to read as follows:
   Public buildings, including the site or grounds of, and the erection, equipment, remodeling, or reconstruction of, and additions or extensions to the buildings, and including the provision and maintenance of juvenile detention or shelter care facilities, when the cost principal amount of the bonds does not exceed the following limits:
    Sec. 2.  Section 331.441, subsection 2, paragraph c, subparagraph (9), Code 2018, is amended to read as follows:
   (9)  Public buildings, including the site or grounds of, the erection, equipment, remodeling, or reconstruction of, and additions or extensions to the buildings, and including the provision and maintenance of juvenile detention or shelter care facilities, when the cost principal amount of the bonds exceeds the limits stated in subsection 2, paragraph “b”, subparagraph (5).
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   If a county proposes to carry out a general county purpose using funds from the issuance of general obligation bonds, generally the issuance of such bonds must first be approved by the registered voters of the county. Current law establishes an exception by providing that a county, in lieu of calling an election, may institute proceedings for the issuance of bonds for a general county purpose by notice and publication of the proposal to issue the bonds that includes a notice of the right to petition for an election, subject to cost and city population limitations. However, if at any time before the date fixed for taking action for the issuance of the bonds, a valid petition is filed with the county auditor asking that the question of issuing the bonds be submitted to the registered voters of the county, the board of supervisors shall either by resolution declare the proposal to issue the bonds to have been abandoned or shall direct the county commissioner of elections to call a special election upon the question of issuing the bonds.
   This bill modifies the cost limitations for each of the population categories in order to use the specified bond issuance procedure by changing the amount limitations to be calculated based on the principal amount of the bonds rather than the cost of the project.